GVMC horticulture tenders spark cartelisation allegations

Allegations of cartelisation have surfaced in the recent horticulture maintenance tenders floated by the Greater Visakhapatnam Municipal Corporation (GVMC), after financial bids revealed that contractors had quoted only 1% to 2% below the estimated contract values.

The GVMC Horticulture Department recently invited 93 tenders for the maintenance of green belts, road medians, traffic islands and junctions across the city for a period of nine months. The financial bids were opened on Saturday, and officials were reportedly surprised by the narrow bid margins, as horticulture tenders in previous years had typically attracted bids that were more than 40% below the estimated values.

The contracts pertain to the maintenance of greenery along Beach Road from Coastal Battery to Bheemunipatnam and on the National Highway stretch from Boyapalem Junction to Lankelapalem. The works include plantation, watering, weeding, trimming and general upkeep of plants and landscaped areas.

According to sources, around 22 contractors, including long-time participants and new entrants, are suspected to have arrived at a prior understanding and divided the works among themselves, with each securing five or six contracts. Officials said the unusually low variation in bid values had raised concerns over the possibility of coordinated bidding, resulting in limited competition.

Sources also pointed out that the quality of horticulture maintenance works has been a subject of criticism in the past, with allegations that contractors carried out only minimal maintenance while drawing full payments. They said the low discounts quoted in the latest tenders could potentially increase contractors’ profit margins unless strict monitoring mechanisms are put in place.

Responding to the allegations, Horticulture Assistant Director Vasuki said the department would closely monitor the execution of the works and ensure adherence to prescribed standards. Detailed records of saplings supplied to contractors would be maintained and verified periodically, he said.

Any failure in maintenance, including the loss of plants entrusted to contractors, would result in deductions from the concerned contractors’ bills, Mr. Vasuki said, adding that the department would not tolerate lapses in the upkeep of greenery across the city.